Canaccord Genuity Adjusts Estimates on Limited Brands (LTD); VS Drives Sales Upside, But Shares Look Fully Valued

Canaccord Genuity maintains a 'Hold' on Limited Brands (NYSE: LTD) price target of $42.00.

Analyst, Laura Champine, said, "LTD reported a consolidated SSS increase of 7% in June on top of +12%. Our estimate was +0.2%, and the consensus forecast was +3%. SSS were up 11% on top of +17% at Victoria’s Secret on strength of the semi-annual sale, particularly in lingerie and Pink. VS’s merchandise margin rate was flat yr./yr."

However, Champine, believes shares are fully valued, currently trading at 16x FY12 estimates. Besides, she feels LTD doesn't have any strong positive catalysts to push the stock above its current trading range. Also, the company's international expansion is moving slow. Although, she raises FY12 EPS estimate from $2.76 to $2.78 (but still $0.04 below prior consensus).

For an analyst ratings summary and ratings history on Limited Brands click here. For more ratings news on Limited Brands click here.

Shares of Limited Brands closed at $44.14 yesterday.

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